A multi-decade chart of the Japanese yen compared to the US Dollar. Anyone buying stocks or property in Japan in terms of foreign currency is getting the best deal in three decades.
Wealthy foreign investors from China and elsewhere have noticed the relative value and started buying up property in Japan. In particular, high-end condos saw their prices soar ever since the lifting of travel restrictions.
That said, it’s worth remembering that the Japanese property market doesn’t function like the rest of the world’s. Only land retains any sort of long-term value.
Meanwhile, structures rapidly depreciate here. It’s the result of strict building codes along with frequent natural disasters.
Japan’s real estate market still has plenty of opportunity though. Major cities like Tokyo and Osaka won’t see their populations decline anytime soon – it’ll be the rest of the country that’ll first see a steep drop in demand.
Philippines
The Philippines’ favorable demographics are a major advantage, with its population exceeding 110 million and growing.
As Southeast Asia’s youngest country, the average age is just 25 years old, tied with Cambodia. This youthful population fuels rapid urbanization, as hundreds of thousands migrate annually from rural areas into cities in search of jobs and opportunities.
As a foreigner, the easiest direct investment option in the Philippines is stocks. Purchasing real estate or starting a business face more hurdles.
To trade on the Philippine Stock Exchange, investors typically must open a brokerage account in Asia – large US or European brokers don’t offer access.
Accounts in Singapore or Hong Kong, on the other hand, do provide the ability to invest in Philippine stocks and other emerging Asian markets. It’s certainly worth getting one if you want to trade in this part of the world.
Meanwhile, real estate ownership poses challenges in the Philippines, especially if you’re a foreign buyer. Only citizens can fully own land, while foreigners are restricted to long-term leases or condominium purchases.
Unfortunately, the condo market is in a bubble with values in Manila’s CBD easily reaching $4,000 per square meter. That’s about the same price as Bangkok or Kuala Lumpur, both of which are far more developed cities by comparison.
In short: you’ll find plenty of great picks on the Philippine stock exchange. There are also opportunities in private equity and VC. Real estate in the Philippines isn’t a great idea though.
Regardless, we rank the Philippines as one of the best places to invest in 2024 because of its strong demographic trends.
Indonesia
The world’s three most populous countries are pretty common knowledge: India, China, and the United States in that order.
Less widely known? Indonesia is the world’s fourth largest country in terms of population with over 270 million inhabitants – and that number is rising fast!
Of course, Indonesia’s massive population means that there’ll be huge demand for consumer products. Multinational firms have taken note of the fact that there’ll soon be 300 million people living here.
Many of them are part of an increasingly-affluent middle class. And they’ll want to buy everything from tissue paper to designer handbags.
